PDF Fitness Center Business Plan Sample

[Pages:52]FITNESS CENTER BUSINESS PLAN SAMPLE

IMPORTANT INFORMATION CONCERNING THIS MEMORANDUM

This Memorandum (the "Memorandum") has been prepared by Fitness Center Company Inc. ("Fitness Center Company" or the "Company") for informational purposes, solely for use by

s prospective investors in considering their interest in entering into a possible purchase of

securities of the Company (the "Transaction").

f te The information contained herein has been prepared to assist interested parties in making their

own evaluation of the Company and does not purport to be all-inclusive or to contain all

o ia information that a prospective investor may desire or that may be required in order to properly

evaluate the business, prospects or value of the Company. In all cases, interested parties should

ty c conduct their own investigation and analysis of the Company. r o The Company does not make any representation or warranty (expressed or implied) as to the

accuracy or completeness of this Memorandum or any statements, estimates or projections

e s contained herein, and will not have any liability for the recipient's use of this Memorandum or p s y any other oral, written or other communications transmitted to the recipient in the course of its

evaluation of the Company. This Memorandum includes certain statements, estimates and

o A p projections provided by, and with respect to the anticipated future performance of, the r o Company. P & Such statements, estimates and projections reflect various assumptions made by the Company C concerning anticipated results, which are subject to business, economic and competitive r uncertainties and contingencies, many of which are beyond the control of the Company and t which may or may not prove to be correct. The only information that will have any legal effect ie o will be that specifically represented or warranted in a definitive agreement relating to a

Transaction with the Company.

v N By accepting this Memorandum, the recipient acknowledges and agrees that all of the ainformation contained herein is confidential and subject to the Confidentiality Agreement X o executed by the recipient. Without limiting the generality of the foregoing: (1) the recipient will

not reproduce this Memorandum in whole or in part; (2) if the recipient does not wish to pursue

D a Transaction relating to the Company, it will (i) promptly return this Memorandum to the

Company, together with any other material relating to the Company which the recipient may have received from the Company, (ii) promptly destroy all copies of any analyses, compilations, studies or other documents prepared by or on behalf of the recipient and containing or reflecting any information in the Memorandum or such other material, and (iii) take such other

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FITNESS CENTER BUSINESS PLAN SAMPLE

actions, if any, required by the Confidentiality Agreement; (3) the recipient will hold all information and the fact that it is involved in any process relating to the Company and the status thereof as confidential; and (4) any proposed actions by the recipient which are inconsistent in any manner with the Confidentiality Agreement will require the prior written consent of the Company.

s The Company reserves the right to negotiate with one or more prospective investors at any time

and to enter into a definitive agreement relating to a Transaction with the Company without

f te prior notice. Also, the Company reserves the right, at any time, to terminate the further

participation in the investigation and proposal process by any party and to modify any

o ia procedures without giving advance notice or providing any reason.

NEITHER THIS CONFIDENTIAL MEMORANDUM NOR ITS DELIVERY TO YOU SHALL

ty c CONSTITUTE OR BE CONSTRUED TO BE AN OFFER TO SELL ANY SECURITIES OF THE

COMPANY. THIS DESCRIPTIVE MEMORANDUM SHALL NOT BE DEEMED AN INDICATION OF

r o THE STATE OF AFFAIRS OF THE COMPANY.

THIS MEMORANDUM CONTAINS CERTAIN PROJECTED FINANCIAL INFORMATION THAT

e s REFLECTS MANAGEMENT'S PROJECTIONS AS TO THE ANTICIPATED FUTURE RESULTS

BASED UPON ASSUMPTIONS THAT ARE INHERENTLY UNCERTAIN, INCLUDING

p s y ASSUMPTIONS AS TO THE SIZE OF THE MARKET IN WHICH IT COMPETES, THE COMPANY'S

MARKET SHARE, GENERAL INDUSTRY CONDITIONS AND OTHER FACTORS. THE

o A p ASSUMPTIONS ARE BASED UPON MANAGEMENT'S JUDGMENT AND ARE DEPENDENT ON

MANY FACTORS OVER WHICH THE COMPANY HAS NO CONTROL. AS A RESULT, NO

r o REPRESENTATION OR WARRANTY IS MADE AS TO THE FEASIBILITY OF THE PROJECTED

FINANCIAL INFORMATION OR THE ACCURACY OR COMPLETENESS OF THE ASSUMPTIONS

P & FROM WHICH THE PROJECTED FINANCIAL INFORMATION ARE DERIVED. THERE CAN BE NO C ASSURANCE THAT THE PROJECTIONS WILL BE REALIZED. IT CAN BE EXPECTED THAT r ACTUAL RESULTS WILL VARY FROM THOSE SET FORTH IN THE PROJECTIONS, AND THAT t THE VARIATIONS MAY BE MATERIAL AND ADVERSE. ie THIS MEMORANDUM ALSO INCLUDES CERTAIN INDUSTRY STATISTICS BASED, IN WHOLE o OR IN PART, ON INFORMATION GATHERED BY THE COMPANY AND THE ESTIMATES OF

MANAGEMENT. NO REPRESENTATION OR WARRANTY IS MADE AS TO THE ACCURACY OR

v COMPLETENESS OF SUCH STATISTICS OR THE ACCURACY OR COMPLETENESS OF THE N ESTIMATES OR OTHER INFORMATION FROM WHICH THE STATISTICS ARE DERIVED. Xa o All communications relating to this material or a possible transaction involving the Company

should be directed to, co-owner. Neither the Company nor any of its customers, affiliates or

D employees may be contacted directly.

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FITNESS CENTER BUSINESS PLAN SAMPLE

Table of Contents

Executive Summary........................................................................................................................................6

Business Description.................................................................................................................... 6 Product and Services.................................................................................................................... 6

s The Market ................................................................................................................................... 7 f te The Competition .......................................................................................................................... 7

Operations ................................................................................................................................... 7

o Management Team ...................................................................................................................... 7 ia Risk / Opportunity ....................................................................................................................... 8

Financial Requirements................................................................................................................ 8

ty c Financial Summary ....................................................................................................................... 8 r o Business Description................................................................................................................................ 10 e s 1.1. Industry Overview........................................................................................................... 10

1.2. Company Description ..................................................................................................... 11

p s y 1.3. History and Current Status............................................................................................. 11 o A p 1.4. Goals and Objectives...................................................................................................... 11

1.5. Critical Success Factors .................................................................................................. 12

r o 1.6. Company Ownership ...................................................................................................... 12 P & 1.7. Exit Strategy.................................................................................................................... 13 C Services................................................................................................................................................................ 14 r t 2.1. Service Description ......................................................................................................... 14 ie 2.2. Unique Features or Proprietary Aspects of Product/Service .......................................... 16 o 2.3. New and Follow-on Products/Services............................................................................ 16 v N The Market........................................................................................................................................................ 17 a3.1. Industry Analysis ............................................................................................................ 17

3.2. Market Analysis .............................................................................................................. 21

X o 3.3. Competitor Analysis ....................................................................................................... 25 D Marketing Strategies and Sales........................................................................................................ 29

4.1. Introduction .................................................................................................................... 29 4.2. Market Segmentation Strategy ....................................................................................... 29 4.3. Targeting Strategy .......................................................................................................... 29 4.4. Positioning Strategy........................................................................................................ 30

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FITNESS CENTER BUSINESS PLAN SAMPLE

4.5. Product/Service Strategy ................................................................................................ 30 4.6. Pricing Strategy............................................................................................................... 30 4.7. Promotion and Advertising Strategy .............................................................................. 31 4.8. Sales Strategy.................................................................................................................. 32 4.9. Sales Forecasts ............................................................................................................... 34

s Management.................................................................................................................................................... 36 5.1. Company Organization................................................................................................... 36 f te 5.2. Management Structure and Style.................................................................................... 36 5.3. Legal Structure................................................................................................................ 37

o ia Operations ........................................................................................................................................................ 38 6.1. Operations Strategy........................................................................................................ 38 ty c 6.2. Scope of Operations ....................................................................................................... 38 r o 6.3. Location .......................................................................................................................... 38 6.4. Personnel ........................................................................................................................ 39 e s 6.5. Operations Expenses...................................................................................................... 40

p s y Financials ........................................................................................................................................................... 42 o A p 7.1. Start-up Funds ................................................................................................................ 42

7.2. Assumptions................................................................................................................... 42

r o 7.3. Break-Even Analysis........................................................................................................ 43 P & 7.4. Balance Sheet.................................................................................................................. 44 C 7.5. Income Statement........................................................................................................... 45 r 7.6. Cash Flow........................................................................................................................ 46 t 7.7. Ratio Analysis ................................................................................................................. 47 ie o Funding Request.......................................................................................................................................... 48 v 8.1. Capital Requirements ..................................................................................................... 48 N 8.2. Risk/Opportunity ............................................................................................................ 48 aAppendix ............................................................................................................................................................ 49 X o 9.1. Year 1 ? Monthly Profit & Loss Proforma........................................................................ 49 D 9.2. Year 1 ?Monthly Unit Sales............................................................................................. 50

9.3. Year 1 ? Monthly Unit Prices........................................................................................... 50 9.4. Year 1 - Monthly Sales Forecast...................................................................................... 51 9.5. Year 1 - Monthly Direct Unit Costs Forecast .................................................................. 51 9.6. Year 1 - Monthly Direct Cost of Sales Forecast .............................................................. 52

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